support@vanguarddev.com
+1 (844) 544-2700
support@vanguarddev.com
+1 (844) 544-2700
COMMERCIAL LENDING
It's a True 'Win-Win' for All!
Five (5) Things 'YOU WILL NOT GET' From Institutional Lenders
NO Personal Guarantees – NO Matter What!
2.Mitigated Financial Risk w/ Assured Completion Lender Wants to Finish Project with (40%) Equity
3. 5% Fixed Interest Rate / ‘Interest ONLY’ Payments Loan’s Debt Service Payments Made By Lender.
4. Lender NEVER Financially Burdens the Project NO Prepay Penalty & ‘YES’ to Liberal Extensions
5. Investor’s Upfront $650k Escrow is Reimbursed Thus, Investor Has NO Final Out-of-Pocket Cost
Download our project
submission worksheet "PSW"
Email Jane Anthony for PSW
support@vanguarddev.com
It's a True 'Win-Win' for All!
Five (5) Things 'YOU WILL NOT GET' From Institutional Lenders
NO Personal Guarantees – NO Matter What!
2.Mitigated Financial Risk w/ Assured Completion Lender Wants to Finish Project with (40%) Equity
3. 5% Fixed Interest Rate / ‘Interest ONLY’ Payments Loan’s Debt Service Payments Made By Lender.
4. Lender NEVER Financially Burdens the Project NO Prepay Penalty & ‘YES’ to Liberal Extensions
5. Investor’s Upfront $650k Escrow is Reimbursed Thus, Investor Has NO Final Out-of-Pocket Cost
Download our project
submission worksheet "PSW"
Email Jane Anthony for PSW
support@vanguarddev.com
Here's how it works >>>
New Project Submission, Approval & Funding Process... START HERE!
Project Submission Worksheet (PSW) & 'NCND' Investor Submits PSW for Underwriting
Investor's Team Reviews LOI - Fee Agreement
ZOOM Conference Call -
Q & A Meeting
Underwriter's Request for Documentation Investor Provides Underwriting Documents
Verification of JV Partner's Liquid Assets Investor Provides Proof of Funds for $700k
Pre-Approval of Project 'Financing Facility' Underwriter APPROVES Financing Facility and Issues LOI - 'Conditional Loan Approval'
Full Transparency Throughout Entire Transaction Investor Meets with the Project Principals - LENDER, LAWYERS, BANKERS, etc.
JV Partner's Funds Paid Into Escrow Investor Transfers $650K Directly to Top Law Firm's "100% Insured" Escrow Trust Account
Verification of JV Partner's Liquid Assets Investor Provides Proof of Funds for $700k
JV Financing Facility 'Loan Document Signing' Investor and Lender Finalize Loan Docs
Funds Disbursement (Fund Control) Lender Directs PriceWaterhouseCoopers - London to AUDIT Fund Distributions
Project's Funding Begins 75-Days After Escrow Project Funding Begins 75-days Following Law Firm's Receipt of Investor's $650K
For any developer looking to tackle large-scale projects, securing the right commercial construction financing is indispensable. >>>
– For those new to large-scale construction, here’s a simple guide detailing the basic steps involved in the commercial lending process, borrower qualifications, SBA lending limits, and the typical down payment requirements for a $50m commercial project.
– So, when you write up your business plan, wanting to put your best foot forward (make the best impression) to the bankers, from their viewpoint, how do you look as a “borrower”?
What’s Your 3-C’s?
– CREDIT Worthiness / Score
– COLLATERAL (Available Capital)
– CHARACTER / Credibility
Choosing Your FINANCING Options
– INSTITUTIONAL or PRIVATE lending >>>
INSTITUTIONAL BANKS offer the least expensive financing cost-wise (no equity), often utilizing a starting “teaser-rate” set-up as a variable interest rate loan, allowing the loan’s interest rate (& payment) to change.
Banks are making their money from the accrued interest and fees, which is highly controlled by regulators.
Thus, these lenders are strictly scrutinized and quite limited by regulations in how creative they can be in their financing.
Institutional lenders require borrowers to have “great credit” and “available capital” for legal fees, appraisals, feasibility studies, etc.
PRIVATE (JV) LENDING (in terms of the end-cost) is more expensive (with JV equity) but requires much less upfront capital, and the lender is much less concerned about “Credit & Capital”; offering much looser, more flexible terms with the lender serving as #1 JV Partner with 40% Equity.
JV Partnership Lending requires much less down payment (which is returned in a year) and offers several many other favorable (risk mitigating) terms.
To qualify for a $50,000,000+ traditional commercial loan, a borrower generally needs:
Solid Credit Score:
Business Financials:
Real Estate Experience
Enough Equity in the Deal
To qualify for a $50,000,000+ traditional commercial loan, a borrower generally needs:
Solid Credit Score:
Business Financials:
Real Estate Experience
Enough Equity in the Deal
What are the details of this NON-RECOURSE Construction Capital
NON-RECOURSE Construction/Development Capital is available now for approved long-term cash-flowing “HUMANITARIAN” projects by commercial developers/builders in acceptable approved jurisdictions worldwide.
Projects such as constructing a Hilton, Marriott, or Six Star hotel chain, or a well-planned, well-organized, or high-end housing development for an affordable 4-star Resort such as “Caribbean Destination Resort” in St. Lucia (for e.g., St. Kitts, St. Marteen, or Georgetown). Thus, it helps these local areas grow and prosper by creating high-paying jobs, supporting and creating jobs and the ongoing generation of substantial incomes.
PROGRAM GUIDELINES:
100% FINISHED LOAN: For “Cost (LTC) Up To USD 500,000,000 Max.” Project Funding for US 80% funded / 60% Euros (European projects) / *For further details, see below.
ELIGIBLE PROJECTS:
Long-Term Cash-Flowing Commercial Projects for “Ground-Up Construction” or “Acquiring of Existing Projects,” as shown.
IMPORTANT POINT:
The INVESTOR / JV (Partner) provides the required standard documentation for a viable commercial project … (business plan, Pro Forma cash-flow calculations, construction budget draw schedule, as requested by the lender). The lender’s UNDERWRITER performs internal due diligence on this project based upon documentation submitted, as well as current project details. (*MUST HAVE Approved Commercial Development Project Access to a Pre-Approved ‘USE OF FUNDS’.)
The lender helps you to create a new ‘Special Purpose Vehicle (SPV) to obtain up to 100% of the 1st mortgage project financing. A portion of the CASH from the lender is structured for immediate repayment of the construction loan with a seamless transition to a 10-year construction or longer permanent project long-term financing.
EQUITY DISTRIBUTION: As INVESTOR, You Receive 30% of the Project’s Value & Cash Flow. The Lender Retains 40% (EQUITY) Misc. Secondary Investors Receive the Remaining 30% EQUITY. INVESTORS
NO UPFRONT “UNDERWRITING” or “PRE-APPROVAL” FEES
This $650,000 is Returned to the “Investor/ JV-Partner” One (1) Year Following the Project’s Initial Funding Date (payment #1 of sixteen loan disbursements).
THUS, IN THE LONG RUN, WITH INVESTOR / JV PARTNER’S $650,000 BEING RETURNED, INVESTOR WALKS AWAY “FREE & CLEAR” WITH A 30% EQUITY STAKE IN THEIR $50M+ CASH-FLOWING PROPERTY.
It is important to understand, the lender does not get involved with the Investor/ JV Partner except to oversee the lender attorney’s transfer of funds through the 16-month payout process.
FULL TRANSPARENCY:
Once a project has been fully established and approved by the lender’s underwriter, ALL of your funds have been placed with the licensed and bonded third-party attorney (working on behalf of the lender). There is no “release of funds” to either party without written consent.
PROJECT FUNDING TIMELINE:
Once the Investor / JV Partner’s funds have been received into the attorney’s account and the lender has approved the project, funds are released to a licensed bonded third-party attorney within Five Business Days. These funds remain in escrow until the lender is satisfied with the project’s final disbursement schedule.
END-GAME STRATEGY
KEEP Completed Project “LONG-TERM” for “Cash Flow.” A “Depreciation-Upon-Cash Flow Asset Write-Off.” The investor retains their investment 100% without having to pay upfront capital gains. They benefit from ongoing annual cash flow as an equity holder. Or they sell the equity position to other investors.
Alternatively, you can “EXIT” to a cash-out via cash-out refinancing to exit to a 10-year Commercial cash-flow management contract.
As above …ALL COSTS / FEES ARE PAID BY LENDER & INVESTOR IS TRUE…
This also includes paying the project’s “LOAN DEBT SERVICES.”
PARTICIPATION:
Investor/ JV Partner must demonstrate their organizational capacity to qualify to participate in the Joint Venture Commercial Projects. Thus, the Investor/ JV Partner must show a Proof of Funds of $650,000.00 USD.
*Note (with full transparency), the Investor/ JV Partner uses USD $650,000 deposit to their Investor Attorney’s Escrow Account to show “Proof of Funds” for “Use of Funds” allocation to the Project finance process.
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